How Much are Northampton’s ‘Millennials’ set to inherit

But before we start, what is Generation X, let alone Generation Z, Millennials, Baby Boomers … these are phrases banded around about the different life stages (or subcomponents) of our society. But when terminologies like this are used as often and habitually as these phrases (i.e. Gen X this, Millennial that etc.), it appears particularly vital we have some practical idea of what these terms actually mean. The fact is that everyone uses these phrases, but often, like myself, they are not exactly sure where the lines are drawn… until now…

So, for clarity …

Generation Z: Born after 1996

Millennials: Born 1977 to 1995

Generation X: Born 1965 to 1976

Baby Boomers: Born 1946 to 1964

Silent Generation: Born 1945 and before

My research shows there are 22,199 households in Northampton owned by Northampton Baby Boomers (born 1946 to 1964) and Northampton’s Silent Generation (born 1945 and before). It also shows there are 47,505 Generation X’s of Northampton (Northampton people born between 1965 to 1976). Looking at demographics, homeownership statistics and current life expectancy, around two-thirds of those Northampton 47,505 Generation X’s have parents and grandparents who own those 22,199 Northampton properties.

… and they will profit from one of the biggest inheritance explosions of any post-war generation to the tune of £5.845bn of Northampton property or £184,464 each but they will have to wait until their early 60’s to get it!

However, it’s the Millennials that are in line for an even bigger inheritance windfall.

There are 38,325 Millennials in Northampton and my research shows around two thirds of them are set to inherit the 28,392 Northampton Generation X’s properties. Those Generation X’s Northampton homes are worth £7.475bn meaning, on average, each Millennial will inherit £292,436; but not until at least 2040 to 2060!

While the Northampton Millennials have done far less well in amassing their own savings and assets, they are more likely to take advantage of an inheritance boom in the years to come. This will probably be very welcome news for those Northampton Millennials, including some from poorer upbringings who in the past would have been unlikely to receive gifts and legacies.

However, inheritance is not the magic weapon that will get the Millennials on to the Northampton housing ladder or tackle growing wealth cracks in UK society, as the inheritance is unlikely to be made available when they are trying to buy their first home… but before all you Northampton Millennials start running up debts, over 50% of females and around 35% of men are going to have to pay for nursing home care. Interestingly, I read recently that a quarter of people who have to pay for their care, run out of money.

So, if you are a Northampton Millennial there potentially will be nothing left for you.

Of course, most parents want to give their children an inheritance, the consideration that what you have worked genuinely hard for over your working life won’t go to your children to help them through their lives is a really awful one… maybe that is why I am seeing a lot of Northampton grandparents doing something meaningful, and helping their grandchildren, the Millennials, with the deposit for their first house.

One solution to the housing crisis in Northampton (and the UK as a whole) is if grandparents, where they are able to, help financially with the deposit for a house. Buying is cheaper than renting – we have proved it many times in these articles… so, it’s not a case of not affording the mortgage, the issue is raising the 5% to 10% mortgage deposit for these Millennials.

Maybe families should be distributing a part of the family wealth now (in the form of helping with house deposits) as opposed to waiting to the end… it will make so much more of a difference to everyone in the long run.

This blog follows the property market in Northampton. You'll find tips, guidance, and analysis that relates specifically to the property market in Northampton. You will also find properties from all the estate agents in the town on here that may make decent investments. I run Northwood here in Northampton and if you're thinking of buying a property to let in Northamptonshire, I'm happy to offer a second opinion.

MEET THE AUTHOR

Katherine Bond

Hi and thank you for visiting my blog. I have been with Northwood in the Northampton property market since 2002 and have always shared my thoughts on the local property market in Northampton with our landlords and home owners, but now using modern technology, I want to share with everyone in the town.

In this blog, I will talk about what is happening in the Northampton’s property market itself, even looking at specific streets or housing estates. At other times, I will post what I consider decent buy to let deals (almost ‘Homes under the Hammer’ for Northampton). The deals will be on the market with other agents in Northampton as well as ourselves. I like to look at the whole of market and give you, what I consider the best investment opportunities.

At other times, I will post properties that I consider need serious consideration for homeowners. They might be because they are good value, nicely presented or some other reason that I think you might find of interest. If you see a potential deal, and want a second opinion, please do not hesitate to contact me. I will always give you our honest opinion on the property and if its a buy to let property, it’s investment potential. (both good and bad).